What is Credit Card Debt Settlement?
It is not exaggeration if one says that most Americans are dependent on credit cards to buy things. Credit cards are used to purchase basic necessities such as food, clothing and paying for the children's tuition to paying for restaurant bills, booking flights and hotels, among others.
This major yin to credit cards' yang would take shape with payable accounts, debts, to put things bluntly.
Statistics show that the average American household owes more than $10,000 in credit card debts. The figure gives emphasis on just how much people have become dependent with using plastic over cash. Used to pay for restaurant bills, paying for education costs, hotel bookings, travel expenses, and more, the usual trend in credit card usage is followed with monthly bill statements, which, more often than not, pile up, in time.
The banks have allowed us to shell out minimum monthly payments instead of having to make full payments so this scheme helps us manage our finances. But this payment scheme has setbacks. One is that we would have to pay for our outstanding for a longer period of time if we only pay the minimum required amount.
This scheme promotes complacency among cardholders in terms of paying for their debts on time. Most card holders would pay the minimum required amount even if their purchases reaches hundreds of dollars. If this practice is done for some time, your balance would balloon so this means that the minimum monthly payments would also increase.
In extreme cases, you have to take another loan just so you can continue to manage your finances. But you can choose to avail of a credit card debt settlement, which is an agreement wherein card holders and banks come up with a compromise payment.
With this, you need to go to your banks and tell them upfront that you cannot anymore afford to pay for your debts. Banks would have to settle for the amount, lesser than you balance, because they don't want you away from your obligations. These banks hate to take you to court either.
Your bankers will decide on the amount and interest rates you're going to pay. All you have to do is keep your end of the bargain.
This major yin to credit cards' yang would take shape with payable accounts, debts, to put things bluntly.
Statistics show that the average American household owes more than $10,000 in credit card debts. The figure gives emphasis on just how much people have become dependent with using plastic over cash. Used to pay for restaurant bills, paying for education costs, hotel bookings, travel expenses, and more, the usual trend in credit card usage is followed with monthly bill statements, which, more often than not, pile up, in time.
The banks have allowed us to shell out minimum monthly payments instead of having to make full payments so this scheme helps us manage our finances. But this payment scheme has setbacks. One is that we would have to pay for our outstanding for a longer period of time if we only pay the minimum required amount.
This scheme promotes complacency among cardholders in terms of paying for their debts on time. Most card holders would pay the minimum required amount even if their purchases reaches hundreds of dollars. If this practice is done for some time, your balance would balloon so this means that the minimum monthly payments would also increase.
In extreme cases, you have to take another loan just so you can continue to manage your finances. But you can choose to avail of a credit card debt settlement, which is an agreement wherein card holders and banks come up with a compromise payment.
With this, you need to go to your banks and tell them upfront that you cannot anymore afford to pay for your debts. Banks would have to settle for the amount, lesser than you balance, because they don't want you away from your obligations. These banks hate to take you to court either.
Your bankers will decide on the amount and interest rates you're going to pay. All you have to do is keep your end of the bargain.
posted by Credit Counseling at
4:21 AM
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